2020 Visual Merchandising and In-Store Marketing Trends fokoretail.com © Foko 2020 — Private and Confidential Visual merchandising involves showcasing products to highlight their features and benefits and make customers want to buy them. But COVID-19 has changed the way consumers spend, shop, and interact with products in-store. This year saw shoppers move to buying essentials during stay-at-home orders, and take advantage of buy online, pickup in store (BOPIS) offers and curbside pickup. And once stores reopened, the shopping experience changed even further to accommodate social distancing and discourage the touching of products. Visual merchandisers have had to get creative and find new ways to attract customers and influence them to make purchases in 2020. And the lessons learned and strategies developed during this difficult time will likely carry over into the new year, regardless of when a vaccine becomes available. Bundle Products In-Store The advent of curbside pickup has eliminated the opportunity for in-person impulse buys. Because customers aren’t browsing aimlessly or waiting in queues lined with last-minute items worth grabbing, those add-on sales are lost. fokoretail.com © Foko 2020 — Private and Confidential 2 / 10 To capitalize on potential purchases, cross-merchandising—placing related products nearby each other on shelves to encourage additional purchases—is key to increasing sales. For retailers who are primarily doing business through online orders and curbside pickup, offer bundles in your e-shop to drive up purchase sizes. Underwear company Lively is thriving during the pandemic, in part because they’ve mastered the bundle. Forgoing their usual swimsuit seasonal promotion this spring because of the pandemic, they are capitalizing on more stay-at-home friendly products like loungewear. The company saw a 1000% increase in loungewear sales, largely by selling sets of tops and bottoms instead of just individual items. They’re also offering curated sets like a “self-care bundle” or “cozy bundle” that group together an array of themed products. It’s a strategy that’s easy to implement in-store, as well. Display curated gift baskets and bundles of themed items to drive up purchase sizes and sales. Discounts on bulk buys and “two for” deals are also great ways to push add-ons. Keep Displays Socially Distant Marketing research firm IBI found that many stores were displacing in-store displays during COVID-19 to accommodate social distancing. As such, vendor-supplied fixtures and decorative stands have given way to more open space. fokoretail.com © Foko 2020 — Private and Confidential 3 / 10 Before she stepped down in August, Crate & Barrel CEO Neela Montgomery told the NRF that Crate & Barrel stores were particularly adaptable to COVID-19 restrictions. The company already mostly existed within large, open spaces, and since March other retailers have followed in her footsteps and had to adjust because of the pandemic. Besides leaving enough space around displays, retailers should consider how interactive the items on display are. Rather than having multiple stacks of the same product out on the floor, it might make more sense to have one sample item on display that can be easily disinfected if customers do touch it. For example, a homewares store like Crate & Barrel might have one table setting on display, instead of piles of plates, glassware, and cutlery that customers might touch and put back. Signage and store associates can let customers know that sealed products are in the back and can be brought out for purchase to limit the number of people making contact with the items. Showcase Your Safety Measures You’ve already got an expert visual merchandising team displaying the products you sell, so why not use them also to showcase the new safety measures your store has in place? Think of it as advertising what you are doing to keep your staff and customers safe. According to management consulting company McKinsey, customers want to buy from companies “they can trust, that can make them feel safe when everything seems uncertain, and that offers support when so much seems to be overwhelming.” fokoretail.com © Foko 2020 — Private and Confidential 4 / 10 So let customers know what you’re doing to protect them from the get-go with signage at the entrance explaining regulations like wearing mandatory masks, limiting the number of people in the store at a time, and providing hand sanitizing stations throughout the store. Directional arrows on floors and signage throughout the store can also help reassure shoppers once they have already entered the building, and should be implemented if they’re not already. Use Data to Disperse Crowds of Shoppers There are countless benefits to collecting and analyzing in-store data, but it can be particularly useful for visual merchandisers in the era of COVID-19. Using tracking apps and monitoring any in-store video footage will help determine where the most foot traffic is in the store and where there might be congested areas. If two high- traffic zones are right next to each other, it makes sense to move one further way to avoid people congregating closely together. Additionally, store data can tell you what your best-selling products are and how often they are bought. These insights might warrant setting up multiple displays of hot items in different areas of the store to avoid overcrowded spots. fokoretail.com © Foko 2020 — Private and Confidential 5 / 10 Go Digital Retailers should remember that it’s possible to maintain in-person shoppers while still embracing technology. Visual merchandising is typically a multi-sensory experience, but with shoppers masked and limiting touch, technology can help fill in some of the blanks. QR codes that take customers on virtual walkthroughs are a no-touch way to show off functionality and benefits by letting shoppers see the product in action. British department store Selfridges’ “A Window to the Future” campaign featured screens displaying garments in motion, with QR codes available for customers to shop on the spot or find more information. Meanwhile, IKEA recently purchased Geomagical Labs in California, and is developing AI tools that let customers envision IKEA products in their own spaces. fokoretail.com © Foko 2020 — Private and Confidential 6 / 10 Looking Ahead to 2021 Retailers have adapted to unexpected challenges since COVID-19 began, but even with vaccines on the horizon, things won’t be returning to “normal” any time soon. With that in mind, here are the takeaways from 2020 and what to keep in mind as you plan for the new year. Maintain Safety In-Store KPMG claims that the way forward for retailers, even in a post-COVID world, depends on managing in-store traffic and movement, reconfiguring store layout, and evolving merchandising techniques. Many retailers scrambled to keep up with changing guidelines and regulations when the pandemic began, but if you haven’t already, invest in infrastructure that will keep your customers and staff safe while still providing a pleasant shopping experience. This might include wider aisles, smaller display cases, or fewer fixtures. The slapdash PPE, barriers, and signs that were constructed and thrown up in March are no longer up to par. Social distancing measures will remain in place for months to come, so come up with a cohesive plan that keeps everyone safe and allows both employees and products to shine throughout 2021. fokoretail.com © Foko 2020 — Private and Confidential 7 / 10 Don’t Forget About the Customer Experience While many retail workers, like grocery store cashiers, have been heralded as heroes throughout the pandemic, other sectors of retail that have been locked down have taken hits to their customer connection. And while 2020 saw shoppers concerned with essential goods and functional transactions, ChangeUp’s executive creative director Jamie Cornelius says 2021 will see a return to delivering on customer experience. She suggests starting with the storefront and creating a welcoming environment that signals a transition back to experience-driven shopping. If safe to do so, retailers can bridge the gap between BOPIS/curbside pickup orders and the physical store by encouraging online shoppers to add to their purchase by entering the shop. Cornelius also suggests creating “moments of connection” with customers while they are waiting to pick up orders either inside the store or at a designated outdoor pickup spot. fokoretail.com © Foko 2020 — Private and Confidential 8 / 10 Embrace Technology Visual merchandising is both an art and a science. Use customer data about how they shop in-store and what they purchase to present items in socially distant, safe, and creative ways, and use technology to stay in touch with stores and reevaluate how things get presented. Need help? Visit fokoretail.com to schedule a demo with one of our representatives to learn how our visual merchandising software is used by 60+ brands worldwide to manage what gets done in-store. fokoretail.com © Foko 2020 — Private and Confidential 9 / 10 Trusted by the biggest names in retail fokoretail.com 153A Promenade du Portage, Suite 200 Gatineau, Qc, Canada, J8X 2K4 +1 (877) 235-5808.